Review launched into how pub and hotel business rates calculated (7 hours ago)
The Treasury has announced a review into the calculation of business rates for pubs and hotels in England and Wales, which could lead to system reform. Led by business rates expert Jerry Schurder, the review will focus on rate valuations and report back in March 2027.
Key Takeaways:
- Who's Involved? Jerry Schurder, a former business rates policy lead at Newmark UK, will head the review.
- Government's Call to Action: The Treasury is seeking input from landlords, hoteliers, and business owners.
- Recent Changes: Last month, Andy Burnham announced a 20% cut in business rates for pubs, social clubs, and live music venues in England.
- Industry Concerns: Pub groups argue higher rates bills, along with increased National Insurance and minimum wage, contribute to staff cost challenges.
- Industry Impact: According to the British Beer and Pub Association (BBPA), 161 pubs closed in Q1 2023 across England, Scotland, and Wales, resulting in approximately 2,400 job losses.
Quotes:
"For years pubs have paid a disproportionately higher business rates bill... this review is sorely needed and hugely welcome." - Emma McClarkin, Chief Executive, BBPA
"Schurder... will bring 'crucial heavyweight business rates expertise into the Treasury.'" - Craig Beaumont, Federation of Small Businesses (FSB)
Context:
The review will inform the next rates revaluation in 2029. Schurder's appointment was welcomed by various industry groups, but some, like the British Retail Consortium, emphasized the need to consider retailers' needs. Shadow Chancellor Sir Mel Stride criticized the review as too little, too late for a struggling industry.